Punjab Infra Plans Rs 1020-Cr Debts Bounds Soon

Punjab finance minister Kanwaljit Singh said that a bill to set up a regulatory body for all infrastructure sectors except power would be tabled before the state assembly at the next session. The bill, known as the Punjab Infrastructure Regulatory Act (PIRA) would be an arbitrator and would also set tariffs and monitor standards of service.

The bond issue is proposed to be raised in four tranches of Rs 300 crore each for three tranches and Rs 120 crore for the fourth tranche. The final structure of the issue is yet to be worked out and PIDB is currently in the process of selecting merchant bankers to place the issue.

The remainder of Rs 1,680 crore is to be raised through a mix of budgetary support, local bodies and the government of India through railway charges.

Kanwaljit Singh said that the state is planning an annual investment of Rs 5,000 crore per year for the next 10 years to maintain a growth rate of 8 per cent.

The PIDB is funded through a 1 per cent cess on petrol and all agricultural produce which provides it with a fund base of Rs 100 crore per annum.